Wednesday, December 3, 2014

U.S. oil settled below $70 per barrel on Tuesday, giving up some of the gains seen on Monday when prices rallied for the first time in six sessions.

U.S. crude settled down $2.12, or 3.1 percent, at $66.88 per barrel, after jumping more than 4 percent Monday. Brent was last down about by about $2, or 2 percent, at $71, after gaining 3.4 percent.

Oil has plunged close to 40 percent in the past five months in its longest string of monthly losses since the 2008 crisis, as supply growth led by the U.S. shale oil boom exceeded demand. A decision by OPEC to maintain output has also pummelled prices.

"The market is trying to find some equilibrium,'' said Olivier Jakob, oil analyst at Petromatrix in Zug, Switzerland.

"There was a sharp drop last week and a rebound yesterday. Brent is trying to find out if it is going to be trading at the $60 to $70 range or $70 to $80.''